Viacom, in the middle of a battle for control between its CEO and its controlling shareholder, reported sharply lower earnings for the June quarter.
The drop was expected as the company announced last month that the latest Teenage Mutant Ninja Turtles movie was a disappointment at the box office, ad sales would be down and revenue from streaming would be down because an agreement with a major distributor had lapsed.
Net earnings fell 27% to $432 million, or $1.09 a share, from $591 million, or $1.47 a share, a year ago. Revenue rose 2% to $3.1 billion.
Operating income for Viacom’s Media Networks Group, which includes Nickelodeon and MTV, was down 22% to $872 million because of higher programming and marketing expenses, the company said. Revenue was down 3% to $2.5 billion, and domestic ad revenue was down 4%. The company blamed lower ratings at some networks plus an effort to reduce ad loads on its channels.
Read more at broadcastingcable.com.